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Article: Cash management can affect a business' credit: developing a cash flow strategy is critical to success. (Special Report: Finance).
- Article from:
- San Diego Business Journal
- Article date:
- May 20, 2002
- Author:
CopyrightCOPYRIGHT 2002 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Cash is the ultimate measure of a company's value.
All other items on the balance sheet are purely timing issues waiting to affect the cash balance. A proper cash management strategy can allow you to generate income from excess cash, or plan for times when outside funds may be necessary to cover temporary cash shortfalls.
Whether expanding a business or trying to maximize profits, understanding how and when the timing of cash inflows and outflows occur is essential to properly managing a company. As economic times tighten, a contractor's surety, lender, and other credit partners can extend more preferable terms and conditions if a strong cash management ...